Virtual data rooms: protecting data with ease

Cyberattacks pose a growing threat to organizations of all sizes. Thus, data protection is an essential step to ensure the company’s operation and growth. Even something as simple as a single phishing email can bring operations to a standstill for weeks, causing immense financial damage and eroding trust among customers, partners, and employees. This makes data privacy a worthwhile economic investment for businesses.

Therefore, investing in data protection is a proactive economic decision and now, in many cases, it’s also a legal obligation. Regulations like the GDPR and the NIS2 Directive, for example, are pushing organizations to rethink their approach to cybersecurity. Navigating these complex requirements can feel overwhelming, especially for businesses with limited IT resources.

One powerful solution? Virtual data rooms (VDR). Platforms like Tresorit make it easy to securely exchange and manage sensitive files, combining robust security features and user-friendly integrations. Below, we’ll explore how virtual data rooms help businesses stay compliant, protect data, and build trust with stakeholders.

Protecting data from unauthorized access

When choosing a virtual data room, the first priority should be security. The most secure VDR providers, such as Tresorit, employ state-of-the-art encryption methods to ensure sensitive information stays safe.

One of the most secure technologies is zero-knowledge end-to-end encryption (E2EE). With this technique, data is encrypted on the sender’s device and only decrypted on the recipient’s device. Even the provider itself cannot access the decrypted information, thanks to the zero-knowledge principle. In case of a cyberattack on the virtual data room provider, cyber criminals can only get their hands on an illegible scramble of data, which is impossible to decrypt.

The right encryption alone, however, cannot prevent sensitive data – often unintentionally – ending up in the wrong hands. Another crucial layer of protection is granular access rights management. By restricting access to specific folders, organizations can ensure that only authorized individuals can view sensitive files, e.g. contracts and personal data. This additional measure not only enhances security, but also fosters trust among stakeholders who value confidentiality.

Ensuring GDPR compliance by choosing the server location

For businesses operating under the General Data Protection Regulation (GDPR), it is critical to use a virtual data room that allows them to choose the location of data storage. Under GDPR rules, personal data must be stored either within the European Union or in a country deemed secure by the EU.

A securely designed data room simplifies compliance by offering flexible server location options. Tresorit stores data by default in the Republic of Ireland and the Netherlands, whilst the data of our Swiss customers is stored in Switzerland. Additionally, Tresorit allows customers to change their data residency at any time, ensuring adaptability as business needs evolve.

Balancing security with usability

While robust security features are essential, they’re only effective if the platform is user-friendly. A virtual data room that’s too complex or inconvenient to use may inadvertently encourage employees to bypass it altogether, creating "shadow IT" systems that undermine the company’s security strategy.

To prevent this, organizations should look for VDR solutions that are simple to use and integrate seamlessly with existing workflows. Tresorit, for example, integrates with popular applications such as Google Workspace, Azure Active Directory, and Office 365, and thus facilitates easy and secure collaboration across teams and locations.

Additional features, such as electronic signatures, enhance usability further by enabling users to sign documents digitally within the same platform. By choosing a user-friendly virtual data room, organizations can boost employee adaption rates, streamline processes and enhance productivity.

Whilst no single solution can cover every aspect of a company’s data protection strategy, VDRs like Tresorit provide an accessible and effective way to guard against cyberattacks, secure sensitive information, and meet regulatory requirements.

Ready to learn more about Tresorit’s virtual data room solutions? Visit our website on secure solutions for client and partner collaboration.